Torillian on 20 April 2008
| EaglesEye379 said: One thing to keep in mind above all these projections is that Sony is already making a loss for every PS3 sold now and has already slashed nearly a third of its price. This will affect two things: a) Leeway for future price cuts, b) Revenue for future publishing and development. Now, it is enjoying a hardware boost, but it really should be selling at the Wii levels to justify the price cuts financially and make Sony a profit. The PS3 business is clearly in the red, whilst the 360 business is finally yielding profits. That is why even a $50 price cut at this point will be quite hard for Sony to justify financially on their books. The 360 has had hardly any NA price cuts and is still enjoying a YOY install base growth rate and any further price cuts can push this to greater profits. What Im saying in the end is that another $50 price cut for PS3 will give very little room for more in the future as they are already making a loss for each sold, and if the hardware boosts are not above current levels, it could even affect Sony's budget for future titles. |
PS3 was a loss last quarter that is true, but it wasn't enough to pull the other 2 systems' profits down and put the gaming devision into the red, so I would suggest that there weren't losing that much on each system. Therefore, stating for a fact that they are still losing money on each PS3 seems foolish because you don't know. We'll have a better idea on it when we get the new financial information for the last quarter.
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